Energean Corporate Presentation July 2020 At a Glance The Leading - - PowerPoint PPT Presentation

Energean Corporate Presentation July 2020

At a Glance

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Best in class industry emissions Growing production Large reserve & resource base Gas- focused

* Inclusive of the to be acquired Edison E&P assets

+800 MMboe 2P & 2C 130 kboed medium-term target +70% gas- weighted portfolio 70% reduction target by 2023

Resilient cash flows

70% of future production insulated from

• il & gas price

volatility

The Leading Independent E&P in the East Med

4

Track Record of Growing Reserves and Resources

>10 years of consecutive growth in 2P reserves & 2C resources

2P & 2C = 828 MMboe

Focused on growing production to >130 kboed in the medium-term

• 100

200 300 400 500 600 700 800 900 2016 2017 2018 2019 2020E Greece Israel Egypt Italy Croatia UK

WI 2P Reserves and 2C Resources MMboe

Edison E&P (Egypt, Italy, UK and Croatia) estimates as of 31.12.2019, excludes Norway and Algeria Energean Israel (Israel) estimates as of 30.06.2019 CPR for Karish & Tanin and 31.12.2019 CPR for Karish North Energean plc (Greece) estimates as of 31.12.2019 CPR.

2016-20 CAGR 37%

5

Delivering Near-Term Low-Risk Production Growth

Medium-term target

>130

kboe/d

2020 2023+

44.5 – 51.5

kboe/d Long-term upside

>200

kboe/d

Filling FPSO Developing UK discoveries

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…That is Resilient to Commodity Price Fluctuations

70% 10% 20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% of Estimated Production 2020-25

20% liquids with Brent-linkage 10% gas sold at local market price 70% gas sold under contracts with pricing mechanisms that protect against Brent price fluctuations Gas floor pricing in Israel and Egypt

$4.2 / mcf average floor price Take-or-Pay Provisions $3.71 / mcf at Abu Qir at $40-72/bbl Brent $4.7 / mcf at NEA at <$25/bbl Brent

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Enhanced Liquidity and Optimised Funding Structure

January 2020 June 2020

+$175m

additional liquidity from upsized $1.45 billion PFF

$245-260m

• f cost reductions and

deferrals in 2020*

+ $220m

RBL facility signed

* This reflects the reduction to underlying capital expenditure guidance and excludes 25-30 million of capital expenditure expected on the UK North Sea assets ** Includes $182 million of cash, $395 million of undrawn facilities available under Israel loan facilities, the $220 million RBL facility and $200m accordion facility

> $1 bn

cash and undrawn facilities**

Facility with additional $200m accordion and £80m LC facilities

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Committed to Taking Action on ESG Goals

Energean Today Energean + Edison E&P Energean + Edison E&P + Karish Energean + Edison E&P + Karish

10 20 30 40 50 60 70 2019 2020 2021 2022

Carbon intensity scope 1 & 2 (kgCO2/boe)

First E&P company to commit to net zero by 2050 Targeting +70% reduction in carbon intensity 2019-22 Executive pay linked to ESG goals from 2020 ~70% gas-weighted portfolio (2P + 2C) Committed to transparency and adherence to the UN SDG’s

* Includes operated assets only

Leaders in ESG Rolling 3 Year Carbon Intensity Reduction Plan*

Israel – Focused on Monetising Gas Reserves

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Karish & Tanin – Driving Value Through a De-Risked Project

Material Reserve & Resource Base

1

EPCIC Contract Minimises Development Risk GSPAs Minimise Commodity Price Risk Growing Domestic Market Long Term, Sustainable, Utility-Type Cash Flows Fully owned infrastructure

6 2 3 4 5

Fully funded Material Proximate Prospective Resource

7 8

What makes this project different?

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Karish Pipe Laying and Subsea Systems Installation Completed

Karish pipe laying completed offshore Israel Installation of Karish manifold completed June 2020 Near-and-onshore pipe laying completed May 2020

12

Singapore Yard Re-opened 2 June Following Lifting of COVID-19 Circuit-breaker Measures

Topside integration and commissioning activities in Singapore expected to take approximately 10 months

Zhoushan, China Singapore

Arrival of FPSO Hull in Singapore on 15 April 2020 Sail away of Energean Power FPSO Hull from China

13

Three Wells Drilled and Tested in 1Q 2020 – Ready for Tie-In to FPSO

All three wells capable of delivering at 300 mmscf/d design capacity when connected to FPSO

World class well deliverability Prolific reservoir

Well performance same or better compared with adjacent producing fields

High quality liquids

Measured at 48°API with upside from potential oil rim

14 FPSO Workstream

Hull First Steel Cut 4Q Topsides First Steel Cut 4Q Hull Keel Laying 2Q Hull and Topsides Construction 1Q – 1Q20 Hull Sailaway from Cosco Yard 1Q Hull and Topsides Integration 2Q – 1Q21 FPSO mooring hookup and Riser 2Q-3Q Performance testing 3Q

2019 2020 2021

Achieved November 2018 Achieved November 2018

Drilling Workstream

Mobilise Stena DrillMAX 1Q Karish North, KM-03, KM-01 & KM-02 1Q – 4Q

2019

Discovery

Subsea and Onshore Workstreams

Pipeline beach crossing at Dor 1Q – 4Q Pipeline installation Karish to Dor 2Q – 4Q Onshore facilities commissioning 2Q – 4Q Installation of subsea infrastructure 2Q – 1Q21

2019 2020

FID (1Q 2018)

Complete Development Wells 1Q

2020

First Gas 2H 2021*

Rig mobilized February 2019

Revised timetable not expected to have a material financial impact due to the contracting structures in place with TechnipFMC and gas buyers in Israel

* Contingent on evolution of the impacts of the COVID-19 global pandemic Achieved April 2020

First Gas Expected 2H 2021

15

Karish North – 32% Uplift on Previous Resource Estimates Confirmed by CPR and FDP Submitted

*70% net to Energean **Excludes cost of second riser

Field Development Plan

Seismic Attribute

KARISH NORTH

1.2 Tcf (~34 Bcm) Gas 39 MMboe Liquids 84% Gas 250 MMboe Gross 2C Resource*

KARISH

Continue sales effort in the domestic market targeting the Ramat Hovav privatisation (1 bcm)

FID expected in 2H 2020 First gas anticipated during 2022 Phase 1: Drilling of one well, tied back to the Energean Power FPSO Phase 2: Drilling of a second well around 2025 to optimise gas recoveries Addendum to the Karish and Tanin FDP submitted to Israel’s Ministry of Energy Production of up to 300 mmscf/d

Energean Israel leases and licences relative to the Karish North field

Capex - $160 million**

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5.6 Bcm/yr Firm Gas Sales Agreements – Secured Revenues with Spare FPSO Capacity

0.6 bcm/yr of contingent contracts converted to firm following issuance

• f Karish North CPR

1 2 3 4 5 6 7 8

1/1/2021 1/1/2022 1/1/2023 1/1/2024 1/1/2025

Firm Contracts Or Contract Spare Capacity Or Contract 0.7 BCM/yr contingent on Or Power Plant Financial Close 14 Firm Contracts 5.6 Bcm/yr with major IPPs and Industrial customers

Total FPSO Capacity (Bcm)

GSPA contracting structure provides certainty of revenue stream and insulation from global commodity price fluctuations

Floor Pricing Take-or-Pay Provisions No Price Re-Openers

High Quality Counterparties

East Med pipeline to create an export route to Europe and offer additional gas monetisation options for future projects Spare capacity

World-Class Drilling Optionality Offshore Israel - Attractive Upside with Limited Commitments

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Full flexibility on investment timing

Zeus and Athena wells deferred to 2021 No immediate requirement to drill

Medium-term value creation potential

7 Tcf gross unrisked prospective in place volumes with 19 MMbbls of liquids Energean Israel leases and licences

Tie-back potential

All prospects in Blocks 12,21,22,23 and 31 situated within a 40-kilometer radius of the FPSO

Low risk prospects

GCoS* ranges from 45-80%

Highest prospectivity in Block 12

1.2 Tcf (34 Bcm) gross unrisked in place volumes in Zeus & Athena, c.70% GCoS

* Geological chance of success

Edison E&P Transaction Update

Transaction Update

19

Algeria and Norway excluded from perimeter Represents approximately $1.1 / 2P boe and 1.2x cash flow** Net consideration now $178 million* Shareholder vote is 20 July – 43% of shareholders have approved to date $466 million total reductions agreed

1

Cassiopea payment now linked to Italian gas prices (PSV)

2 3 4 5 6

Closing expected late 3Q / early 4Q UK retained within portfolio – recent discoveries offer significant upside

7 8

* If transaction had closed at 31 May 2020. Energean does not expect this number to change materially ** Cash flow before exploration for the period 31/12/18 – 31/12/19

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Net Consideration Reduced to $178m**

* Effective 1 January 2020 ** Based on the consideration that would have been payable (net of cash acquired) had the transaction closed on 31 May 2020 *** Based on ex-Cassiopea 2P reserve base

$8.0 /boe received $4.5 /boe received $0.7 /boe price reduction***

FCF (pre exploration) > net consideration to be paid

$750m

($155m) ($200m) ($111m) ($206m) $117m

Original Consideration

Algeria Carve Out Norway Carve Out Negotiated discount Economic performance to 31 May 2020 One-off exploration costs ($17m) Original SPA Adjustment

Net Consideration Approximately $1.1 / 2P boe

2 deepwater wells in Egypt 2 HP/HT wells in UK North Sea – 2 discoveries

$178m Potential Net Consideration <$0m

<$0m acquisition price once $214m of outstanding Egypt receivables (as at 31.05.20) are fully recovered

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Cassiopea Contingent Payment to Vary Between $0 and $100m

Depending on future gas prices at the point of first gas*

$100m

• Minimum payment
• Gas prices < €10/Mwh
• Equivalent to c.$3.4/mcf
• Payment equivalent to

$0/mcf

• Maximum payment
• Gas prices ≥ 20/Mwh
• Equivalent to c.$6.8/mcf
• Payment equivalent to

c.$1.8/mcf

$0m

• Straight line formula for

prices between €10 and €20/Mwh

• E.g. $50m payable at gas

prices of €15/Mwh

* Expected in 2023

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Fully Funded Through New Financing Signed on 20 June 2020*

Facility Size

• $220m initial RBL

facility

• $200m accordion
• £80m letter of credit

facility for the UK assets

Providers Interest Rate

• LIBOR + 4.75% yrs 1-3
• LIBOR + 5.75% yrs 4-6

Key Terms

• 6-year term
• Semi-annual

redeterminations

• Customary covenants
• 3-year grace period

with first amortisation in July 2023

* Replaced the bridge-to-disposal facility put in place on 3 July 2019

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Transaction Path to Closing – Key Steps in Detail

Algeria carve out agreed Norway carve out agreed and discount negotiated Publication of Prospectus & Circular Energean shareholder vote Outstanding Government Approvals Completion of carve-out of Norwegian subsidiary & Algerian assets Transaction Close & Technical Re-Listing

EGM: 20 July 2020 Proxy Voting Deadlines: TASE: 12 July LSE: 16 July Late 3Q / early 4Q 2020 Late 3Q / early 4Q 2020 Late 3Q / early 4Q 2020

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Acquisition Delivers Material Production with Near-Term Investment Opportunities

Edison E&P assets to be acquired (excludes Algeria and Norway) * $264m in 2019 ** $146m in 2019

Group Medium-Term Working Interest Production kboe/d Adds a Gas-Weighted Portfolio 2P + 2C MMboe

27% 73% 31% 69% 28% 72%

Energean Acquired Assets Pro-forma Liquids Gas

Robust Valuation

Adds 226 MMboe 2P + 2C at

<$1.0/boe $178m

Net acquisition price

<$0

Acquisition price once receivables fully recovered

+130 kboe/d production target

Contributes to rising production out to 2023

Immediate Cash Flow Growth

$321m*

EBITDAX 31/12/18 – 31/05/20

$206m**

Cash flow before exploration 31/12/18 – 31/05/20

Material investment opportunities

with upside potential

20 40 60 80 100 120 140 2020 2021 2022 2023 Energean Acquired Assets

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Large Combined Reserve and Resource Base

* To be acquired ** D&M CPR at 31.12.19 *** Management estimates

2P 2C 2P + 2C** % Gas

114

• 114

87% 70 36 106 50% 3

• 3

100% 4

• 4

46% 287 201 489 88% 54 59 113 7% 532 296 828 72%

MMboe

Edison E&P – Assets Overview

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Egypt: Low-Cost, Cash-Generative Production

2020 2022 2021 Low Cost Development

Abu Qir infill drilling estimated at <$4/boe

Abu Qir infill drilling NEA first gas (18 months post-FID) NEA peak production (adding 9 kboe/d incremental output) NEA FID

2020 capex cut to $40-50 million (from $100 million)

Fast Conversion of 2P to production

NEA 18 month development timetable

Secured Gas Pricing Life of Field

Due to gas pricing formulae with Egas

Stable Production

Expected to be maintained at around 30-35 kboe/d for the next four years

5 10 15 20 25 30 35 40 2020 2021 2022 2023 2024 Abu Qir NEA

Kboe/d

2020 capex cut to $40-50m (from $100m)

2023+

With upside from over $214m net receivables, of which $136m are classified as overdue*

*At 31 May 2020

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Stable Gas Prices in Egypt due to Protective Gas Pricing Mechanisms

$3.71 /mcf At Brent prices of $40-72/bbl $1.37 /mcf Price floor at $0/bbl Brent 6-month Rolling pricing applied $4.80 /mcf At Brent prices >$40/bbl $4.70 /mcf Price floor at <$25/bbl Brent 6-month Rolling pricing applied

4,2 4,4 4,6 4,8 5 20 40 60 80

$/mcf $/bbl Brent

NEA Gas Price Structure Abu Qir Gas Price Structure

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 20 40 60 80 100 120

$/mcf $/bbl Brent

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Italy – Long-term Gas Production Growth Driven by Cassiopea Development

Material volumes Adding 10 kboe/d incremental output (100% gas) Stable production with upside potential With medium-term upside potential from:

• Rospo sidetracks +3.6 kboe/d
• Other gas fields +2.4 kboe/d

Limited near- term abandonment spend Cassiopea – largest greenfield in Italy with first gas expected in 2023 2020 output performing in line with guidance Decommissioning costs in 2020-22 estimated at $29 million Committed to optimising spend through:

• New technologies and partnerships
• Driving economies of scale
• Dialogue with regulatory bodies

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UK North Sea – Significant Upside Potential From Glengorm and Isabella Gas-Condensate Discoveries

• Situated in Central North Sea in 80m water

depth

• Largest UK gas find since Culzean in 2008
• 250 MMboe gross gas-condensate resources
• Two firm appraisal wells to be drilled in 2020-21
• HP/HT – reservoir pressure ~13,000 psi and TD

temperature 183°C Glengorm Discovery Isabella Discovery

• Discovered in March 2020 in close proximity to

Glengorm

• Well encountered 64 metres net pay of lean gas-

condensate and high-quality light oil

• Appraisal programme to be confirmed

Total-operated Blocks in Central North Sea

Source for map – Total

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Committed to Optimising Decommissioning Activities and Spend

Scale Effects

Scale achievement through grouping of assets in adjacent areas also promoting increased negotiation leverage in contracting activities

Potential Partnerships

Potential creation of partnerships for decommissioning activities (e.g ENI) further increasing scale potential and promoting transfer of solutions

Regulations

Proactive interaction with local government and regulation bodies to jointly design/review decommissioning regulations

New Technologies

Adoption of new technologies promoting innovative solutions to further optimise costs and maximise operational excellence

Re-Use and Alternative Use

Continued effort in identifying potential alternative uses for existing platforms prioritising assets with higher cost base

13 4 29 199 255 27 31 112 50 100 150 200 250 300 350 400 2020-22 2023-2028 Post-2028

$ Million

Croatia Italy UK

Source for decommissioning cost estimates – DNV and DSA

57 243 372

The Combined Business

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2019 – Pro Forma Position

685 36 36 22 341 3 76 89 237 264 10 190 59 Capital Expenditure Cash from Operations EBITDAX Operating Costs 2P Reserves Production Revenue Energean Edison E&P assets to be acquired

$571m 62 kboe/d $10 / boe $300m $273m $774m 532 MMboe

34

2020 Production Above Guidance YTD

YTD Production of 53.0 kboe/d in Jan-May 2020* …Outperforming FY 2020 Guidance of 44.5 – 51.5 kboe/d* 38.6 kboe/d 11.9 kboe/d 52.9 kboe/d

Jan-May 2020

34 – 37 kboe/d 9.5 – 12.5 kboe/d 44.5 – 51.5 kboe/d

FY 2020 Guidance

* Average WI production. Excludes Algeria and Norway

2.4 kboe/d 1 – 2 kboe/d

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Our 2020 Targets – What Next?

Securing new GSPAs and resource in Israel NEA / NI Final Investment Decision** Edison E&P transaction close and integration Carbon intensity reduction of 65% Cutting costs and financial discipline – targeting G&A savings of $10-15m per year*

* Post Edison acquisition close ** Subject to Edison E&P transaction close

1

Completion of Prinos Strategic Review

2 4 5 6

Evaluate further growth opportunities in the region

7 9

Further progress Karish project as per FDP

3

Karish North FID

10

36

Growth in Production and Cash Flows – Funded Transformation of Reserves into Returns

Greece Italy Egypt Croatia Israel Israel upside from filling FPSO * Excludes Israel upside ** Includes Israel upside from filling FPSO UK

20 40 60 80 100 120 140 160 180 200 2020 2021 2022 2023 2024

Average Annual Wroking Interest Production - Kboe/d

Including Karish, Karish North Upside: Production CAGR 2020-23: c.52%** Base Case Production CAGR 2020-23: c.41%*

37

Medium Term Targets Consolidated Financial Outlook

• 160 kboe/d (130 kboe/d)

Consolidated (net) Production

• > $1,400 million

Revenues

• <$7.5/boe

Cost of Production*

• $25 – 35 million

G&A

• > $900 million

EBITDAX

* Includes royalties

This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Energean believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Group’s control or within the Group’s control where, for example, the Group decides on a change of plan or strategy. The Group undertakes no obligation to revise any such forward-looking statements to reflect any changes in the Group’s expectations or any change in circumstances, events or the Group’s plans and strategy. Accordingly no reliance may be placed on the figures contained in such forward looking statements.

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Disclaimer